Question: How would most companies prefer to classify leases? Why? ANSWER Operating, because finance leases have a negative effect on Nef ficome Operating, because finance leases

How would most companies prefer to classify leases? Why?
ANSWER
Operating, because finance leases have a negative effect on Nef ficome
Operating, because finance leases have a negative effect on the debt ratio
Finarke, because operating leases have a negative effect of Net Incoene
Finance, because operating leases do not transfer ownership of the assets at the end of the asset's life
IDONT KNOW YET
How would most companies prefer to classify

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

VI. Ratio Analysis of Financial Statements Prepare a ratio analysis using ALL of the ratios learned in chapter 17 to analyze your company. You should calculate the ratios for two years to be able to...

Q:

Please find attached assignment and see if you can help me in that and provide me the main points (in the article of spencer and web (2015) as attached) that need to be criticized, also I need an...

Q:

Working on a final paper evaluating General Motors Co, corporate performance. Attached is the outline of the assignment along with GM financial annual statement. Evaluation of Corporate Performance...

Q:

In my opinion, it is an improvement. First of all, as mentioned in the Summary, it increases transparency and comparability among organizations. Also, it gives a complete and understandable picture...

Q:

Question 1 The Jumbo Group restaurant chain launched its initial public offering (IPO) in October 2015. As a financial analyst of Tiger Investment Fund, your boss has requested for you to brief her...

Q:

I need help from a Financial expert who is very familiar with exchange rate exposure & payout policy.I will adjust the price as you suggest. For some reason I am not able to do it here. Please be...

Q:

I need help with #1-5. Please refer to Amazons 2020 Annual Report. Thank You! Name of company chosen: Refer to the notes to the financial statements. The first note, "Summary of Significant Ac-...

Q:

(1) Financial Ratios Referencing this week?s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios,...

Q:

Here is a accounting writing assignment, do you want to help? www.pwc.com Leases 2016 This publication has been prepared for general informational purposes, and does not constitute professional...

Q:

Here is a accounting writing assignment, do you want to help? www.pwc.com Leases 2016 This publication has been prepared for general informational purposes, and does not constitute professional...

Q:

Calculate its dividend payout ratio over the last year: Calculate the stock's total required return based on the above data: Calculate the implied perpetual growth rate of dividends per annum (g),...

Q:

Telic Company decided to write off Pamela account on September 1, 2020 using the direct write off method. Pamela had previously purchased decorative merchandise on account and worth $30,000 from...

Q:

Pesto Corporation acquired 6 5 percent of Sauce Corporation s common stock on January 1 , 2 0 X 7 , for $ 2 7 4 , 3 0 0 in cash. At the acquisition date, the book values and fair values of Sauce s...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...